Guitar Center Credit Card Review: Dangerous Choice?
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Want to finance a purchase at Guitar Center with their credit card? Read the fine print and you’ll find those no-interest promotions aren’t nearly as good as they sound.
Before you apply for a Guitar Center credit card, make sure you understand the dangerous pitfall of their financing offers and sky-high interest rates.
Guitar Center Promotions Explained
Probably the biggest reason to apply for the Guitar Center card is their financing offers, which offer you no-interest on your purchase for a specified amount of time. An example of one of their promotions is 18 months of no interest in merchandise from over 140 manufacturers.
These promotions are not like the no-interest deals you get from major credit cards, however. If you fail to pay your balance in full before your promotion ends, your account will automatically be charged interest going back to the purchase date. Given the exorbitant interest rate on this credit card, you could be looking at hundreds or even thousands of dollars in interest charged overnight.
Another word of caution: a single late payment during the promotion will also trigger this deferred interest going back to the purchase date. Be very careful if you decide to use one of these offers, mark the promotion end date on your calendar and make sure it’s paid in full ahead of time.
Very High-Interest Rate
The second reason you should be careful of the Guitar Center credit card is the interest rate, which is currently a variable APR of 22.9%. While this is fairly standard of a retail credit card, there are still plenty of better cards out there. Rather than financing a purchase through the Guitar Center card, try a rewards credit card with a 0% promotion that doesn’t involve deferred interest.
The Bottom Line
You’ll definitely find some good promotions with the Guitar Center credit card which can make it seem like a great choice to finance a new guitar or gear. Still, the card has a very high-interest rate and these promotions can turn around and bite you hard if you don’t pay your balance quickly or make a late payment. You’ll find plenty of better credit cards out there to finance a purchase without the potential pitfall.
If you’re looking for a card to finance a purchase a Guitar Center, you may want to consider the Citi Simplicity card, which has no annual fee plus a regular APR that varies between 12.99% and 21.99%, depending on your credit. This card has no late fees or penalty APRs to worry about, plus there’s a 0% introductory APR for 18 months on balance transfers and purchases. This is comparable to the same financing promotions offered by Guitar Center, without the risk of deferred interest charges.
Credit Shout is a community of personal finance experts dedicated to helping you save money and make smart financial decisions. Learn how to master your credit card rewards, improve your credit score and start eliminating your debt.